Alvin,
That is correct. When you add a YouTube video to Canvas Studio, the video itself still "lives" in youtube. It just gets displayed through Studio so that you can take advantage of Studios tracking and engagement features. If the video gets deleted from youtube it will not display anymore through Studio either.
Keep in mind that most videos on youtube are the intellectual property of other people. As such it makes sense that they get to control if it's viewed and have the right to take them down.
Rick
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